Former Gov. James E. McGreevey spent a lot of time talking about how "business-friendly" New Jersey was, apparently hoping that if he repeated it often enough, the state's corporations and entrepreneurs would somehow believe it.

They never did, and for good reason: McGreevey's policies didn't match the rhetoric. We hope acting Gov. Codey has a better understanding than his predecessor of how an improved business climate benefits everyone, not just employers, and that he will act accordingly.

A study released Tuesday by an economic think tank confirms that Codey has his work cut out for him if he wants to make New Jersey more attractive to business -- an essential component of any strategy to help generate the tax revenues needed to close the state's looming $4 billion budget deficit.

The study, published by Pacific Research Institute in conjunction with Forbes magazine, ranked New Jersey 42nd in "economic freedom" -- an index based on 100 variables that include regulatory and fiscal obstacles to a healthy business climate. The state ranked 49th in fiscal policy, a measure that included 51 tax-related variables and drew heavily on data that were largely a year or two old. If it had included any of the dozen new taxes and fees McGreevey imposed this year, including an income tax surcharge on the state's wealthiest residents, New Jersey may well have finished 50th.

The economic freedom study won't be telling business executives in New Jersey anything they didn't already know. Earlier this year, CFO magazine rated New Jersey's corporate tax policies as the least friendly in the nation. And a New Jersey Business & Industry Association survey found that three of four executives believed the business climate in New Jersey was worse than in other states.

New Jersey residents can't prosper if its businesses don't prosper. Codey needs to reach out to the business community -- not only in word but in deed. He must attack wasteful spending and reduce the property tax burden, allowing businesses and residents to keep more of their hard-earned dollars.